IMAGINATION
                              TECHNOLOGIES: NEXT GENERATION KYRO IIT 3D GRAPHICS
                              ACCELERATOR
                              12TH MARCH 2001
                              IMAGINATION
                              TECHNOLOGIES' PARTNER STMICROELECTRONICS ANNOUNCES
                              NEXT GENERATION KYRO II(tm) 3D GRAPHICS
                              ACCELERATOR AND CUSTOMER HERCULES
                              Imagination
                              Technologies Group plc (LSE: IMG), the leading
                              provider of human computer interface intellectual
                              property (IP), reports that STMicroelectronics
                              (NYSE: STM) has today launched its revolutionary
                              KYRO  II(tm) 3D graphics and video
                              accelerator based on PowerVR(tm) technology>
                              from Imagination Technologies. STMicroelectronics
                              has also announced a major  customer,
                              Hercules (Euronext Paris, Guillemot - 6672), who
                              is launching graphics cards based on KYRO II.
                              Hercules, part of the Guillemot Corporation, is
                              one of the most respected names in PC graphics
                              cards and a leading supplier of branded graphics
                              products worldwide.
                              KYRO II is ST's
                              second generation of PC graphics controllers based
                              on the PowerVR architecture. By its more
                              intelligent use of computing and memory resources,
                              KYRO II sets a new performance standard in the
                              graphics processor
                              industry. KYRO II silicon is now in volume
                              production. Under licensing arrangements,
                              Imagination Technologies receives royalties on
                              processors based on PowerVR, including KYRO and
                              KYRO II.
                              
KYRO II utilizes
                              the innovative PowerVR Tile Based Rendering to
                              avoid the memory bottleneck and deliver
                              state-of-the-art 3D graphics image quality and
                              leading edge 3D graphics performance, with crisp
                              2D graphics, studio quality video playback, and
                              DVD decode support. Hercules' 3D PROPHET 4500
                              features the best of KYRO II technology and is the
                              world's first top-performance graphics board that
                              is within every gamer's reach. It combines a very
                              efficient design, 64MB of fast on-board RAM and
                              the perfect drivers to offer the ultimate
                              experience to the whole gaming community with both
                              current and future games. 3D PROPHET 4500
                              demonstrates clear performance leadership when
                              compared on popular games and industry benchmarks
                              with other products in its class.
                              Claude Guillemot,
                              President of Hercules Technologies says: "The
                              key in computer graphics is today to be able to
                              cope with the increasing scene complexity and
                              bandwidth and large texture volumes without
                              sacrificing the perfect quality of high resolution
                              images. ST, with its technical expertise, 
                              came out in an incredibly short time with a
                              breakthrough architecture for  the KYRO II
                              graphic controller that will delight the most
                              ambitious game developers. Which is why we have
                              chosen ST's KYRO II as the foundation of our new
                              product family."
                              Tim Chambers, VP
                              and General Manager of ST Graphics Product
                              Division says: "We are delighted with
                              Hercules' decision to use the KYRO II in their
                              critically acclaimed 3D PROPHET product line. As
                              the leading independent graphics board supplier in
                              the US retail market, Hercules has the brand
                              recognition
                              and market presence to bring the very significant
                              benefits of  KYRO II to the broadest numbers
                              of consumers."
                              
Hossein Yassaie,
                              CEO of Imagination Technologies says:
                              "Through the inherent benefits of the PowerVR
                              architecture, ST's KYRO II will deliver
                              performance-leading graphics combined with
                              enhanced image quality at an affordable cost.
                              Hercules' extensive market presence will strongly
                              reinforce
                              PowerVR as a key technology in the PC space."
                              
About Hercules
                              Technologies: Founded
                              in 1982 in the U.S., Hercules developed the
                              industry's first high-resolution
                              graphics board for personal computers. From its
                              roots in establishing the monochrome graphics
                              standard, Hercules proceeded to pioneer advances
                              in color graphics solutions. Over the years,
                              Hercules has consistently produced innovative and
                              exciting products including graphics, image and
                              video products, and recently, audio solutions,
                              mostly for the gaming community. In November 1999,
                              Hercules was purchased by Guillemot Corporation.
                              
The Guillemot
                              Corporation group develops, manufactures and
                              distributes PC and console peripherals, providing
                              high-quality products for gamers and music
                              enthusiasts worldwide. The group is also proud to
                              include officially licensed Ferrari, NASCAR, Top
                              Gun and US Air Force products as part of its
                              accessories line designed by Thrustmaster,
                              acquired by the group in July 1999. Guillemot
                              Corporation is listed on the Paris Stock Exchange,
                              Sicovam code 6672, and is currently present in 14
                              countries, distributing its products in a total of
                              45 countries. 
                              About
                              STMicroelectronics: STMicroelectronics (formerly
                              SGS-THOMSON Microelectronics) is a global
                              independent semiconductor company, whose shares
                              are traded on the New York Stock Exchange, on the
                              ParisBourse and on the Milan Stock Exchange. The
                              Company designs, develops, manufactures and
                              markets a broad range of semiconductor integrated
                              circuits (ICs) and discrete devices used in a wide
                              variety of microelectronic applications, including
                              telecommunications  systems, computer
                              systems, consumer products, automotive products
                              and industrial automation and control systems. In
                              2000, the Company's net revenues were $7,813.2
                              million and net earnings were $1,452.1 million.
                              Further information on ST can be found at
                              www.st.com.
                              About PowerVR
                              Technologies:  PowerVR Technologies - a
                              division of Imagination Technologies - develops
                              and markets the unique PowerVR graphics/video
                              technology. Existing partners licensing the
                              technology include NEC and STMicroelectronics.
                              PowerVR  Technologies design wins have
                              included Sega's latest video games console, 
                              Dreamcast, the Naomi arcade system, which is used
                              in the majority of new arcade machines worldwide,
                              and numerous PC add-in and OEM customers. More
                              information is available on the PowerVR
                              Technologies web site at  www.powervr.com
                              About Imagination
                              Technologies: Imagination Technologies Group plc
                              is an international company that develops,
                              licenses and supplies market-leading 2D/3D
                              graphics, digital  video, audio and speech
                              technologies and products for consumer
                              entertainment 
                              and PC Markets. The company has deployed and
                              planned technologies for games
                              consoles, PCs, arcade entertainment machines,
                              digital set-top boxes, in car
                              information/entertainment systems, and mobile
                              devices. Since it was founded
                              in 1985, the company has introduced, via licensing
                              arrangements or directly, a succession of
                              innovative technologies, silicon chips and add-in
                              boards, which have played a major role in the
                              development of multimedia and computer-based
                              entertainment systems. Imagination Technologies
                              Group plc has
                              its corporate headquarters in the United Kingdom
                              and is publicly traded on  the London Stock
                              Exchange (FTSE:IMG). More information is available
                              on the Imagination Technologies web site at
                              www.imgtec.com